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S&P Assigns Proliance Insurance Co. `R' Rating

3 January 2001

S&P Assigns Proliance Insurance Co. `R' Rating

    NEW YORK--Standard & Poor's--Jan. 3, 2001-- Standard & Poor's today assigned its 'R' financial strength rating to Proliance Insurance Co. (Proliance).
    The rating action follows the filing of a complaint by Ohio Department of Insurance Director Lee Covington in the Franklin County Court of Common Pleas requesting that Proliance, a Columbus, Ohio, domiciled property/casualty company, be placed into rehabilitation. The court granted the order on Dec. 28, 2000.
    Proliance conducts business primarily in Ohio, writing an estimated $3 million in premiums per year. The company writes mainly preferred risk homeowner's and automobile insurance. Proliance was placed into rehabilitation after it was found to be insolvent, with a surplus falling below the required statutory minimum.
    An insurer rated 'R' is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations, Standard & Poor's said.---CreditWire